Bhubaneswar:3/11/18: Chief Minister Naveen Patnaik on Saturday launched Odisha Aerospace & Defence Manufacturing Policy-2018 which aims to carry forward the process of industrialization through the promotion of Aerospace & Defence Manufacturing enterprises, generate employment opportunities and promote value addition.
The policy proposed to extend subsidy upto 50% of the cost of land, building, plant and machinery to the SPV setting up the first state-of-the-art Aerospace and Defence Park in the State, an official statement said.
The ceiling will be Rs 50 crores for Common Facility Centre, Rs 30 Crore Technology Innovation Centre and Rs 25 crore for Testing Centre, established with Private participation. The Policy provides Capital grants of 50 per cent of the infrastructure cost limited to Rs 10 crore for subsequent Aerospace & Defence Parks.
The policy will also extend a capital subsidy of Rs 100 crore for the first three OEMs setting manufacturing facilities in the state with investment of at least Rs 1,000 crore and generating domiciled employment of 1,000.
In addition, for the first three OEMs setting up manufacturing units in the state, Interest Subsidy will be allowed up to a limit of Rs 10 crore per annum & Rs 5 crore per annum, based on investment in Plant & Machinery for an amount of more than Rs 500 Crore and between Rs 100 crore to Rs 500 crore, respectively.
This provision is designed to attract key players to set up units in the state, which in turn will provide impetus for further development of ancillary and downstream units in the state. Other units, will be entitled to 10% capital subsidy upto Rs. 50 crore, as per the policy.
New A&D manufacturing units shall be entitled to interest subsidy for timely payment at 5% per annum on term loan availed from Public Financial Institutions / Banks for a period of 5 years from the date of commencement of production subject to a total limit of Rs. 10 lakh for Micro Enterprises, Rs 20 lakh for Small Enterprises, Rs 40 lakh for Medium Enterprises & Rs 1 Crore for Non MSME Units.
Besides, Micro, small & Medium units will be able to avail reimbursement of cost towards ESI & EPF for employment of skilled and semi-skilled workers domiciled of the State.
Other incentives such as land at concessional rate, exemption of Premium for conversion of land & Stamp Duty, reimbursement State Goods & Service Tax (SGST) etc shall also be extended.
Moreover, the enterprises will come up in the industrially backward districts namely Kandhamal, Gajapati, Mayurbhanj along with KBK districts will be extended additional incentives.